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Do you worry about volatility when choosing among stocks? One idea is to consider a stock's recent trading volatility.

We ran a screen with this idea in mind, beginning with stocks of the S&P 500 that are rallying above their 20-day, 50-day, and 200-day moving averages. We screened these stocks with upward momentum for those with low volatility over the last month, with average intra-day trading volatility under 2% for the last month (meaning on average, these stocks have traded within 2% ranges each day over the last month).

We then screened for those that also appear undervalued relative to the Graham Number. The Graham Number is a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.

It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

Interactive Chart: Press Play to compare changes in market cap over the last two years for up to six of the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks offer less risk? Use this list as a starting point for your own analysis.

List sorted by average intra-day volatility over the last month.

1. Pepco Holdings, Inc. (POM): Engages in the transmission, distribution, and supply of electricity. Market cap at $4.31B, most recent closing price at $18.90. Average intra-day volatility over the last month at 1.20%. The stock is currently rallying 1.59% above its 20-day moving average, 0.21% above its 50-day MA, and 0.47% above its 200-day MA. Diluted TTM earnings per share at 1.15, and a MRQ book value per share value at 19.13, implies a Graham Number fair value = sqrt(22.5*1.15*19.13) = $22.25. Based on the stock's price at $18.89, this implies a potential upside of 17.78% from current levels.

2. Loews Corporation (L): Operates primarily as a commercial property and casualty insurance company in the United States. Market cap at $16.16B, most recent closing price at $40.53. Average intra-day volatility over the last month at 1.27%. The stock is currently rallying 0.75% above its 20-day moving average, 2.09% above its 50-day MA, and 6.49% above its 200-day MA. Diluted TTM earnings per share at 2.62, and a MRQ book value per share value at 47.49, implies a Graham Number fair value = sqrt(22.5*2.62*47.49) = $52.91. Based on the stock's price at $40.77, this implies a potential upside of 29.78% from current levels.

3. The Chubb Corporation (CB): Provides property and casualty insurance to businesses and individuals. Market cap at $20.09B, most recent closing price at $73.83. Average intra-day volatility over the last month at 1.31%. The stock is currently rallying 2.19% above its 20-day moving average, 5.34% above its 50-day MA, and 12.18% above its 200-day MA. Diluted TTM earnings per share at 5.86, and a MRQ book value per share value at 57.16, implies a Graham Number fair value = sqrt(22.5*5.86*57.16) = $86.81. Based on the stock's price at $73.39, this implies a potential upside of 18.29% from current levels.

4. CenterPoint Energy, Inc. (CNP): Operates as a public utility holding company in the United States. Market cap at $8.5B, most recent closing price at $19.80. Average intra-day volatility over the last month at 1.61%. The stock is currently rallying 1.25% above its 20-day moving average, 2.17% above its 50-day MA, and 3.24% above its 200-day MA. Diluted TTM earnings per share at 3.16, and a MRQ book value per share value at 10.03, implies a Graham Number fair value = sqrt(22.5*3.16*10.03) = $26.70. Based on the stock's price at $20.05, this implies a potential upside of 33.19% from current levels.

5. PNC Financial Services Group Inc. (PNC): Operates as a diversified financial services company. Market cap at $34.87B, most recent closing price at $65.94. Average intra-day volatility over the last month at 1.65%. The stock is currently rallying 1.05% above its 20-day moving average, 4.26% above its 50-day MA, and 18.37% above its 200-day MA. Diluted TTM earnings per share at 5.51, and a MRQ book value per share value at 63.27, implies a Graham Number fair value = sqrt(22.5*5.51*63.27) = $88.57. Based on the stock's price at $65.26, this implies a potential upside of 35.71% from current levels.

6. The Allstate Corporation (ALL): Engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses primarily in the United States. Market cap at $16.83B, most recent closing price at $34.21. Average intra-day volatility over the last month at 1.67%. The stock is currently rallying 3.67% above its 20-day moving average, 5.28% above its 50-day MA, and 22.66% above its 200-day MA. Diluted TTM earnings per share at 2.01, and a MRQ book value per share value at 38.91, implies a Graham Number fair value = sqrt(22.5*2.01*38.91) = $41.95. Based on the stock's price at $34.2, this implies a potential upside of 22.66% from current levels.

*BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 6 Rallying, Low-Risk S&P 500 Stocks Undervalued By The Graham Number